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Town of Los Altos Hills City Council Special Meeting Minutes Thursday, September 15, 2011 Council Chambers, 26379 Fremont Road, Los Altos Hills, California 1. CALL TO ORDER,ROLL CALL AND PLEDGE OF ALLEGIANCE (2:10 P.M.) A. Call to Order Mayor Summit called the City Council Special Meeting to order at 2:10 p.m. in the Council Chambers at Town Hall. Present: Mayor Ginger Summit, Mayor Pro Tem Rich Larsen, Councilmember Jean Mordo, Councilmember Gary Waldeck Absent: Councilmember John Radford Staff: City Manager Carl Cahill, Finance Director Nick Pegueros, City Clerk Deborah Padovan B. Pledge of Allegiance 2. PRESENTATIONS'FROM THE FLOOR Persons wishing to address the Council on any subject not on the agenda may do so now. Please complete a Speaker Card located on the back table of the Council Chambers and submit it to the City Cleric Comments are limited to two (2)minutes per speaker. California law prohibits the Council from acting on items that do not appear on the agenda. �. Under a Resolution previously adopted by the Council,such items can be referred to staff for appropriate action, which may include placement on the next available agenda. There were no presentations from the floor. 3. NEW BUSINESS A. Resolution Amending the City Council Adopted 2011-12 Budget in the Amount of $1,224,708.42 to Prepay Lease Agreement#04-070-AF Dated September 16, 2004 for the Construction of the Town Hall Facility and Authorizing the City Manager to Transmit Payment to the Lender, City National Bank. The item was presented by Finance Director Nick Pegueros who stated that the Finance and Investment Committee (FIC) met on Monday, September 12, 2011, and received a presentation from the investment advisor PFM Asset Management. In that discussion, PFM was reviewing current market conditions and opportunities for the Town to invest funds. The current yield on low risk securities is very close to zero and the FIC inquired about opportunities that save interest if the Town cannot earn interest. One of the areas of savings identified is the current loan on Town Hall. The loan was taken in 2005 and the current outstanding balance is $1.3 million dollars with an interest rats of 4.65%. Based on the analysis conducted by one of the FIC.committee members,Roddy Sloss, it was determined that the Town should consider paying off debt in instances or situations where the Town does not expect to earn a 5.1%return on investment. Given the current market conditions and the outlook at the Federal Reserve level, it does not appear that City Council Special Meeting Minutes September 15,2011